Photoshop: Cursor doesn't look like we expect when CAPS LOCK is on

I am now attending a ICDL photoshop class in Singapore. Some of the students have got some control issues with the drawing and selection tools. The trainer said that it is an undocumented issue but says it is not a bug. He noted that it will happen only when you have the caps lock on the keyboard "ON".

To us Newby users of Photoshop anything that the Trainer cannot explain or rectify is an event that we cannot control. Cos the Trainer was struggling with that different cursor issue over the three day module despite knowing that it was caused by the Cap Lock from online search, but instead of acknowledging it as built in feature he mentioned to us that it was a "undocumented issue". So much so that he "warned" us to make sure our Caps was Off.

Sure we looked very Dumb for more than half an hour trying to make it look like ok but.......I guess it was a case of Blind Leading the Blind.